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yuwiee(Newbie)Newbie
23 July 2022

I'm a health professional, no office, no permanent base and regularly travels for work to different places in Perth. My work reimburses us at a rate of 0.78 cents per km (previously .72 cents/km - 21/22 financial year) if we travel over 50kms return. If we don't go over that, then we get nothing since they deem that a reasonable travel. I noted they classified the mileage claims as "Allowance" on my payslip therefore I was taxed for those travel expenses that are already not normal drive.


Are they right to tax those claims? Can I claim for those mileage on my tax return?


Thank you

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1 replies
1,196 views
1 replies

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Most helpful replyATO Certified Response

RachATO(Community Support)Community Support
ATO Certified Response25 July 2022

Hi @yuwiee,


If you're being paid under the cents per km method, it's considered an allowance because they're not covering the exact expense you incur (a reimbursement).


For allowances, tax withholding doesn't apply to business kilometres travelled up to 5,000kms. It's only once this distance is exceeded that withholding applies. 


If the eligibility criteria are met, you should still be able to claim a deduction for out-of-pocket work-related car expenses you've incurred.

All replies

Most helpful replyATO Certified Response

RachATO(Community Support)Community Support
ATO Certified Response25 July 2022

Hi @yuwiee,


If you're being paid under the cents per km method, it's considered an allowance because they're not covering the exact expense you incur (a reimbursement).


For allowances, tax withholding doesn't apply to business kilometres travelled up to 5,000kms. It's only once this distance is exceeded that withholding applies. 


If the eligibility criteria are met, you should still be able to claim a deduction for out-of-pocket work-related car expenses you've incurred.

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